ch such a height. We should have secured in time, in previous
centuries, our due share of the parts of the world outside Europe."

The Prince looked thoughtfully before him. After a brief silence the
Imperial Chancellor continued--

"Your Royal Highness may have heard that the Netherlands are firmly
resolved, in the interest of self-preservation, to be incorporated with
the German Empire as a federal state, like Bavaria, Saxony, Wurtemburg,
Baden, and the other German states, after the Franco-German War.
The rich and extensive Dutch colonies would then also become German
colonies; that is to say, they would enter into the political union of
the other German colonies while remaining under the administration of
Holland. Our intention of repairing the wrong done by England to the
Boers has made a very good impression on the Dutch population. The Boer
states will enter into the same relation to us in which they stood to
England before the Boer War, and their independence will be restored to
them."

"Meaning self-government with the recognition of German supremacy.
Certainly, they are kinsmen of the Dutch. But, my dear Baron, will not
the German people be alarmed at the consequences of an extension of our
possessions over sea? Larger colonial possessions necessitate a larger
fleet. Think of the struggle which the allied Governments had to carry
through Parliament even a modest increase in the German fleet!"

"I am not so much afraid of this difficulty, for the German people have
learnt the value of the fleet. We have got beyond the tentative stage,
and have paid enough for our experience. We must hold fast what we
possess and recover what we have lost during the last decades through
the unfortunately unbusiness-like spirit of our foreign policy. Then the
German people will have renewed confidence in our colonial policy."

"But how will you raise the sums necessary to make our fleet strong and
powerful?"

"Our negotiations with the friendly Governments of France and Russia are
a proof that in these states, just as in the German people, there is
a desire for a diminution of the land army; there is an equally strong
feeling in Italy and Austria. The people would break down under the
burden if the expenses for the army were increased, if we diminish our
land army we shall have the means to increase our naval forces. Now,
after a victorious war, the moment has come when the whole Continent can
reduce its enormous standing a